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Case Study: Human Behavior Organization, Cheat Sheet of Behavioral Economics

Case about how to response on different situation regarding to the application of knowledge in Human Behavior Organization class.

Typology: Cheat Sheet

2021/2022

Uploaded on 03/24/2024

ruela-mae-amando
ruela-mae-amando 🇵🇭

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Download Case Study: Human Behavior Organization and more Cheat Sheet Behavioral Economics in PDF only on Docsity! Title: INTERNAL CONTROLS AND FINANCIAL PERFORMANCE OF SELECTED COMMERCIAL BANKS IN BOSASO, SOMALIA Name: Amando, Ruela Mae S. & Badong, Darlene Date: February 03, 2024 Abstract: The thesis “Internal Controls and Financial Performance of Selected Commercial Banks in Bosaso, Somalia” analyzes what are internal controls, relationship between the financial performance and internal control systems within commercial banks that operate in Bosaso. Thus, the main purpose is to emphasize the importance of internal controls in ensuring the financial stability and wealth of commercial banks that operate in the harsh and multifaceted infrastructure of Somalia. By means of a general analysis, the thesis discusses education levels, marital status and vast work experience of the respondents, which back up their ability to distort the study. The multidimensional academic backgrounds, especially that a large number of respondents were degree-holders show a developed subject understanding. Furthermore, the fact that most respondents in this category were married means that they had a heightened sense of responsibility which might have had an impact on their work behavior and perception towards this work. The significant career experience with most spanning beyond 15 years points to the fact that it is a trove of knowledge and skill in the banking industry. The implications derived from the thematic review have highlighted the importance of taking into account respondents’ academic qualification, marital status and work experience when interpreting the association between internal controls and financial performance within commercial banks. The ethical issues, what we can call attention to from the study’s results are respect for autonomy of respondents, data protecting from revealing and so on. The important aspect that needs to be addressed in relation to the limitations of the study, i.e., a sensitivity of financial data and potential respondents’ biases, is to formulate research integrity. For example, the thesis provides informative details on relevant determinants of internal controls and financial performance within Bosaso’s commercial banks, such that centrality of ethics and understanding research limitations are acknowledged. Review Paper: Internal controls are core stones for the stability and success of commercial banking, they serve an essential purpose of protecting assets, ensuring compliance, and ensuring customer confidence. This article is dedicated to the role of internal controls in tough banking settings, more specifically, Somalia where political instability, economic unpredictability, and legislation hinder financial success. The article intends to reveal how internal controls can be effective in identifying risks and hence curb them for the best outcome for commercial banks. In the beginning, an article identifies internal controls in commercial banking as something being prevented fraud incidents, accurate financial reporting, and operational integrity. It further goes into the details of the challenges that are presented to Somali banks and how internal controls come in as they mitigate these obstacles and ensure an optimal financial position. The article builds its discussion of the deep connection between internal controls and financial performance in the real world, through the use of specific examples to demonstrate that strong controls make for favorable financial results, thus highlighting the value of good expenditure on control mechanisms. Additionally, the article discusses different considerations to assessing controlling factors that can influence banks’ internal controls and financial performance including organizational culture and regulatory frameworks hence their ability to shape control strategies for best performance. It gives insights on practices of effectively implementing the control initiatives with such components as risk assessment, control activities and monitoring which is paramount to optimize operational controls in rapidly changing banking milieu. The conclusion brings together important points and offers directions for future research, calling researchers for undertaking studies that will help to understand the in-depth nature of internal controls as a driver towards financial success in commercial banking. Abdulkadir Yasin Khalif's paper accurately explains three prevalent research methodologies to study the relationship between internal controls and bank financial performance: surveys, case studies, and statistical analysis. He also conducted a correlational analysis. Surveys and Questionnaires: This strategy provides for the efficient collection of data from a large number of banks or workers. It can reveal industry-wide perceptions and practices about internal controls and financial performance. In the said study, Khalif’s collected data from three selected commercial banks (Bosaso), which was collected from 162 respondents quantitatively using questionnaires. The data was analyzed using frequency and percentages for the demography of respondents, descriptive statistics of mean and standard deviation for measuring the level of internal control dimensions and organization performance, and finally, correlation analysis was used to determine the relationship between internal controls and the financial performance of the banks. Survey responses may be biased or erroneous due to recall issues or an unwillingness to provide sensitive information. A case study provides detailed knowledge of the intricate interplay between internal controls and financial performance within a single bank or group of institutions. Enables qualitative data analysis by capturing rich details and nuances that cannot be easily quantified. The focus on a single example, however, limits the findings' generalizability. They cannot demonstrate causal linkages because they are observational in nature. The study used qualitative methods with 7 respondents and interview guides. Globally and especially in the 19th century, internal controls were majorly established to ensure organizational profitability towards the attainment of goals and mission and to minimize risks across the organizations (Aguola, 2012). Internal controls facilitated management in dealing with the ever-changing economic and competitive environments, shifting customer demands and priorities, and restructuring organizations for growth. Internal controls promote efficiency, reduce risks of asset loss, and support or ensure the reliability of financial statements and compliance with organizational laws and regulations. This is fundamental for improving the financial performance of the entity. Furthermore, statistical analysis allows for the identification of correlations and causal links between internal control variables and financial performance indicators based on objective data from bank financial statements. Statistical methods offer a more solid and scientific foundation for reaching findings. Although it necessitates access to trustworthy and extensive data, which may not be available in all circumstances, statistical models can be complex and susceptible to assumptions, and the results must be carefully interpreted to prevent oversimplification.